Business tycoon, the new SLPP MP Dhammika Perera has unveiled
12 strategies that can boost much-needed dollar earnings and help Sri Lanka
come out of the prolonged foreign exchange shortage which has triggered an
economic crisis leading to political instability and social unrest.
As per his action plan, if the 12 strategies are implemented
the country could garner an additional $ 8 billion inflow per annum. He says
implementation of these 12 strategies does not incur additional capital
investment on the part of the Government.
His 12 strategies encompass sectors such as tourism,
agriculture, power generation, foreign employment, higher education, and ICT and
focus on foreign exchange generation as well as saving measures.
1 - Increase foreign currency bank deposits by USD5 billion in the
next 5 years.
a) Issue a 10-year
residence visa for foreign citizens who would deposit USD100,000 in banks for
10 years in Sri Lanka.
b) If this scheme is
initiated, Sri Lanka can generate USD5 billion of foreign currency deposits.
c) To achieve the target of
USD5 billion in foreign currency deposits, 50,000 residence visas need to be
issued in the next 5 years, each year 10,000 residence visas are to be issued.
d) Thereby, foreign
currency deposits of USD1 billion per annum can be secured by initiating the
above scheme.
e) In addition, an online
application system and approval process should be in place for foreign currency
bank account openings.
2 - Extend the tourist visa validity period for 6 months to
increase tourism revenue by 10%.
a) Permit the issuance of a
six-month tourist visa instead of a one-month tourist visa.
b) By introducing a
six-month tourist visa, the estimated tourism revenue of USD4.5 billion per
annum can be increased by 10%, i.e. an additional tourism revenue of USD450
million.
3 - The current outflow of USD2.5 billion due to students studying
abroad is to be reduced by 20%, which will save USD500 million. In addition,
Sri Lanka can earn USD2.5 billion in inflows by attracting international
students.
a. Currently, 35,000 new
students are leaving the country for higher studies in a year. In addition,
70,000 students are already engaged in foreign universities for higher studies
as 2nd or 3rd-year students.
b. Since 105,000 Sri Lankan
students have chosen foreign universities for their study purposes, there is a
foreign currency outflow of USD2.5 billion per annum.
c. To reduce USD2.5 billion
outflow by 20% and to attract more international students, the below actions are to
be taken,
i. Local private higher
education institutions such as NSBM, SLITT, and E-Soft are to be established
with the approval of the University Grants Commission (UGC) and to be
recognized as private universities in Sri Lanka.
ii. Offer tax holidays and
other incentives for new private university establishments and existing
small-capacity private universities for their expansions.
iii.
Global rankings of Sri
Lanka’s public universities to be improved.
iv.
Introduce an
International Education Strategy to attract more international students and
through the strategy initiate a program, named “Study in Sri Lanka” to
attract international students to select Sri Lanka as their higher educational
hub.
v.
A task force should be
formed and targets to be given to attract 35,000 foreign students to Sri Lanka
via the “Study in Sri Lanka” program. This will negate the current outflow of
USD2.5 billion, which is a cause of 35,000 local students going aboard for
their higher education.
d. An annual saving of
USD500 million can be achieved by initiating this action item.
4 - Introduce international student visas to earn foreign student
fees and increase international education income
a)
Private higher education
institutions such as NSBM, SLITT, CINEC, E-Soft, Horizon, and IIT should be
allowed to enroll international students based on 3 to 4-year student visas.
b)
Following best practices
of global student visas issued by countries such as Australia, New Zealand,
Canada, the UK, and the USA, an online student visa application system should
be introduced.
c)
Through this, 35,000
international student visas should be issued as a solution to the current
outflow of USD2.5 billion from 35,000 local students studying abroad.
5 - Increase foreign worker remittances from USD7
billion(pre-Covid) to USD24 billion per annum by forming a 10 – year plan.
a. Increase monthly funds
sent by migrant workers from USD290 to USD1,000.
b. Monthly, 2 million
migrant workers on average send USD290 to their families as funds during the
pre-Covid period.
i.
In order to increase
monthly funds from USD290 to USD1,000, the Sri Lankan migrant workforce should
be given the necessary qualifications and training, targeting foreign countries
that offer high-salary jobs. With this implementation, Sri Lanka can earn
foreign worker remittances of USD24 billion per annum within a 10-year period.
ii.
Due to Covid19, the
number of workers departing from Sri Lanka has decreased when compared to
pre-Covid19 period. Form a committee to identify current challenges and find
solutions to increase the number of workers departing from Sri Lanka.
iii.
Maintain Telegram groups
per foreign country to improve conditions in the sector of foreign employment
for Sri Lankan migrant workers.
1.
Invite all Sri Lankan
migrant workers who are working/used to work in other countries to join the
relevant country’s Telegram group.
2.
The main objective of
this group is to collect the above segments’ views and suggestions they might
have for further improvement opportunities within Sri Lanka’s foreign
employment.
3.
A dedicated team should
be appointed by the Sri Lanka Foreign Employment Bureau to collect these ideas.
4.
On a weekly basis
conduct meetings to take necessary actions to solve/ find solutions to current
challenges or to implement various new methods to develop this sector.
5.
This team should report
to the Minister of Foreign Employment on a weekly basis with the identified
challenges and solutions given.
iv.
Sri Lankan foreign
employment agencies should conduct monthly performance reviews on the number of
foreign jobs they may have secured for Sri Lanka with the Minister of Foreign
Employment.
v.
Initiate a program for
all Sri Lankan foreign missions based in various countries to find and share
what are the most in-demand and highest paid jobs in their destinations. Ensure
Sri Lankan migrant workers are placed at those destinations for high-salary
jobs.
vi.
For those jobs, develop
teaching and training materials following global best curriculums.
vii.
Maintain a skill
development Telegram group to provide training and improve the skills of
migrant workers.
viii.
Short videos on subjects
such as personal development, behavioral training, best grooming & hygiene
practices, language training, customer service, and other related video
materials to share for all to access.
ix.
Conduct
Government-sponsored workshops for foreign employment agencies to increase
overseas job placement numbers for Sri Lankan migrant workers.
x.
Launch a website that
would contain details of available global jobs for Sri Lankan migrant workers
to access.
xi.
Develop the existing
eldercare assistant vocational program and increase the number of eldercare
assistant migrant workers to earn USD1 billion inward worker remittances.
1.
Tertiary and Vocational
Education Commission and the private sector should collaborate and create a
plan to produce 100,000 migrant workers as eldercare assistants targeting the
Europe market.
2.
Necessary training
should be given targeting a monthly salary of USD1,200 or more for the migrant
worker.
3.
Short courses that can
be completed within 3 months’ time should be introduced under the eldercare
assistant TVET program.
4.
For example, the
University of Moratuwa, and DP Education launched a free online course that can
be completed in a short period of time. The course Trainee: Full Stack
Development, can be accessed via https://open.uom.lk
5.
Advanced Level bio
stream students who are competent in the English Language can be selected for the
eldercare assistant vocational program.
xii.
If 100,000 elder care
assistants are produced with a monthly salary of USD1,200, Sri Lanka can earn
USD1 billion worth of inward worker remittances.
xiii.
Identify all other
on-demand overseas jobs, such as patient care assistants, drafters,
bricklayers, air conditioning and mechanical services plumbers, and
hairdressers, and create/update existing TVET curriculums targeting those
on-demand jobs. Refer to other countries’ skilled migration occupation lists to
identify more high-demand jobs.
xiv.
Produce a pool of
migrant workers, by setting physical and medical standards such as
height-weight proportionally, age, eyesight, and awareness on general health
habits as key focus areas in introducing these standards.
xv.
All services of the
Foreign Employment Bureau, i.e., services to migrant workers such as passport
services, pre-departure approvals & loan facilities, and services to
recruitment agencies such as obtaining and renewal of licenses and approval to
recruit to be established in all 24 districts via “District Multi-Service”
centers.
xvi.
In addition, the following
services should be catered to in all 24 districts through “District
Multi-Service” centers.
1. Services of the Department
of Immigration and Emigration including the issuance of passports.
2.
Services of the
Department for Registration of Persons including the issuance of National
Identity Cards.
3.
Consular services are provided
through the Ministry of Foreign Affairs.
4.
Services of the Police
Department including police and forensic reports.
5.
Services of the
Department of Labour including withdrawal of EPF, ETF, and other funds.
6.
Services of the Ministry
of Education and Department of Examinations.
7.
Services of the
Department of Law and Justice.
xvii.
Collaborate with
employment agencies in other countries to find jobs for Sri Lankan migrant
workers.
1.
Yearly, USD1.3 billion
savings can be made by initiating above mentioned activities.
6 - Increase foreign direct investments.
a.
Increase regional competitiveness
by introducing tax holidays and other incentives.
b.
Appoint a committee to
improve the rankings of,
i.
Global Innovation Index
ii.
Corruption Perception
Index
iii.
Global Competitiveness
Index
7 - Generate USD5 billion from ICT earnings.
a.
Existing state
university-owned ICT, engineering, and programming degrees are to be made
available for private education institutions to use and offer as external
degrees for their students. Every 6 months, exams can be held following the
procedures of state universities. Over a 5-year period, 500,000 students should
get educated and enter the IT industry.
i. For example, the
University of Moratuwa, and DP Education launched a free online course on
Trainee: Full Stack Development, which is accessible for all. The website to access
the course is https://open.uom.lk
b.
To increase the student
enrolment number in ICT, public universities should also make their ICT-related
courses available online by 10 times. This will lead to a high number of
students getting ICT qualified and industry ready to enter the ICT field.
c.
As a result, ICT-related
earnings can reach up to USD5 billion.
d.
An additional earning of
USD750 million per annum can be achieved by initiating above mentioned suggestions.
8 - Establish budget airline hubs to generate USD2 billion.
a.
In countries such as
Thailand, Singapore, Malaysia, and Vietnam, 50% of tourist arrivals are on
budget airlines.
b.
In Sri Lanka, out of the
80,000 hotel rooms, only 30,000 hotel rooms are classified as 5 or 4 stars or
any star category. The remaining 50,000 hotel rooms are in the budget
accommodation category.
c.
In order to generate
USD2 billion from budget airline hubs, the following initiatives are to be
executed,
i.
Transform Rathmalana and
Mattala airports into international budget airline hubs.
ii.
Attract more low-cost carriers
(budget airlines) to arrive in Sri Lanka to accommodate low-cost carrier
passengers.
1.
With the above
initiative, additional 1 million tourist arrivals can be expected. This would
result in generating USD2 billion in earnings.
iii.
Encourage the establishment
of domestic airline services.
iv.
Existing airports in
Trincomalee, Batticaloa, Koggala, and Digana in Kandy should attract high
volumes of domestic aircraft by initiating the following,
1.
Landing, ground
handling, and parking rates are to be revised and reduced to increase the
affordability for domestic airline carriers.
2.
As a result, the
economic benefits of tourism will spread to far corners of Sri Lanka.
d.
Annual income generation
of USD2 billion can be achieved through the above-mentioned initiatives.
9- Generate USD600 million income with coconuts.
a)
Annually, 1.5 million
coconut seedlings are planted. Through a 5-year program, 20 million additional
new seedlings are to be planted. This is achieved by planting additional 4
million seedlings every year.
b)
As a result, 1.2 billion
nuts are produced as an additional harvest.
c)
If one coconut product
is sold at an export price of USD0.50, from 1.2 billion coconuts, an income of
USD600 million can be generated.
10 - Outward payments can be deposited in USD to earn interest
payments in USD.
a) Outward payments such as
dividend payments, travel, construction, insurance, telecommunication, computer
service, royalty, and air and sea transport fees can be converted to USD and
deposited.
b) These can be deposited
for a 3-year period with an interest rate decided by the Government. For
example, at an interest rate of 6%.
c) An annual deposit of
USD300 million can be received by implementing this action item.
11 - Save USD1 billion by allowing the private sector to invest in
new power plants powered by solar or coal in Norochcholai and Sampur.
a)
For the current 900MW
power generation using coal, the total coal consumption cost at the current
market price is USD50 million per month. Thus, the annual coal consumption cost
to generate power is USD600 million.
b)
In addition, the current
900MW power generation using diesel and furnace oil cost at the current market
price is USD135 million per month. Thus, the annual cost of fuel is USD1,620
million.
c)
As cost-saving power
generation solutions, below 2 options are proposed,
Option 1: Solar farms
1.
To generate 900MW of
power to consume during the daytime, 2,000MW new solar farms should be
constructed.
2.
As a result, the current
900MW power generation in the daytime using fuel, which has an annual fuel cost
of USD800 million, can be replaced by new solar farms.
3.
Thermal-powered plants
should only be operational at nighttime to generate the electricity needed to
use nighttime.
4.
Private sector should be
allowed to invest in the construction of 2,000MW new solar farms.
5.
By implementing option
1, a saving of USD800 million can be achieved.
Option 2: Coal power plant
a)
Current diesel and
furnace oil power plants that generate 900MW can be replaced by constructing an
additional new coal plant for 300MW in Norochcholai and by constructing a new
coal plant in Sampur for 600MW. By replacing the fuel power plant with coal,
the annual fuel cost of USD1,620 million is now replaced with an annual coal
cost of USD600 million, hence an annual saving of USD1 billion is achieved.
b) Private sector companies
should be given the opportunity to invest in constructing the 2 power
generation plants in Norochcholai (300MW) and Sampur (600MW).
c)
Annually, USD800 million
from option 1, and USD1 billion from option 2 can be saved.
12 - Save USD200 million on Palm oil.
a) To save USD200 million
outflow, lift the ban on planting palm oil trees.
Economic Revival of Sri Lanka
a)
Sri Lanka has an annual
shortage of inflows of USD6 billion to accommodate basic needs such as fuel,
gas, medicine, fertilizer, and food.
b)
By implementing the
proposed 12 key strategies, an additional annual income of USD8 billion can be
generated as future cash inflows.
c)
To effortlessly build
confidence in Sri Lanka’s macro-economic stability and assist in unlocking
international financing from International Financial Institutions (IFIs) such
as International Monetary Fund (IMF), and World Bank (WB), additional cash
inflows as suggested in the above action plan are to be generated, to reduce
the deficit in the balance of payments.
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